Washington is moving to restrict U.S.-China capital flows. But there’s a trillion-dollar reason why this can’t go on forever.
Capital — accumulated money — is like water flowing down a hill. You can divert it but it often just ends up flowing elsewhere.
Credit: REUTERS/Brendan McDermid
The United States is taking more steps to limit Chinese investment and capital raising in America. Many are claiming this marks the start of a fundamental capital divide between the two nations, part of a broader decoupling of their relationship.
Whether or not this proves true is really not about any near-term restrictions. Instead, the real question is: what will become of the massive dollar capital flow from the U.S. to China?
To be sure, Washington seems to be cordoning off
Exclusive longform investigative journalism, Q&As, news and analysis, and data on Chinese business elites and corporations. We publish China scoops you won't find anywhere else.
A weekly curated reading list on China from Andrew Peaple.
A daily roundup of China finance, business and economics headlines.
We offer discounts for groups, institutions and students. Go to our Subscriptions page for details.
The former Biden official and China scholar makes the case for the previous administration's approach and discusses why Beijing is content to watch the U.S. now dismantle its sources of strength
Navigate China's Business Landscape with Confidence.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OKPrivacy policy
